Credit Quality and the Allowance for Loan and Lease Losses

3 Months Ended

Mar. 31, 2026

Credit Quality and the Allowance for Loan and Lease Losses

The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class. Refer to Note 1 and Note 6 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional information on the Bancorp’s accounting policies and estimation practices for the ALLL.

Allowance for Loan and Lease Losses

The following tables summarize transactions in the ALLL by portfolio segment:


For the three months ended March 31, 2026 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
Balance, beginning of period	$	1,186	109	958	2,253

Losses charged-off(a)(b)	(77)		—	(110)	(187)
Recoveries of losses previously charged-off(a)(b)	8		—	35	43
Provision for (benefit from) loan and lease losses	60		(7)	99	152
Allowance on PCD loans and leases at acquisition	177		2	1	180
Allowance on PSLs at acquisition	466		4	11	481
Balance, end of period	$	1,820	108	994	2,922

(a)The Bancorp recorded $4 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.

(b)Excludes net charge-offs of $94 million which were taken immediately at the time of the Comerica acquisition.


For the three months ended March 31, 2025 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
Balance, beginning of period	$	1,154	146	1,052	2,352
Losses charged-off(a)	(67)		—	(106)	(173)
Recoveries of losses previously charged-off(a)	3		—	34	37
Provision for (benefit from) loan and lease losses	151		(7)	24	168
Balance, end of period	$	1,241	139	1,004	2,384

(a)The Bancorp recorded $6 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.

The following tables provide a summary of the ALLL and related loans and leases, classified by portfolio segment:


As of March 31, 2026 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
ALLL:(a)
Individually evaluated	$	147	—	14	161
Collectively evaluated	1,673		108	980	2,761
Total ALLL	$	1,820	108	994	2,922
Portfolio loans and leases:(b)
Individually evaluated	$	492	143	106	741
Collectively evaluated	122,367		19,259	33,778	175,404
Total portfolio loans and leases	$	122,859	19,402	33,884	176,145

(a)Includes $2 related to commercial leveraged leases at March 31, 2026.

(b)Excludes $105 of residential mortgage loans measured at fair value and includes $238 of commercial leveraged leases, net of unearned income, at March 31, 2026.


As of December 31, 2025 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
ALLL:(a)
Individually evaluated	$	178	—	15	193
Collectively evaluated	1,008		109	943	2,060
Total ALLL	$	1,186	109	958	2,253
Portfolio loans and leases:(b)
Individually evaluated	$	367	143	105	615
Collectively evaluated	73,195		17,403	31,332	121,930

Total portfolio loans and leases	$	73,562	17,546	31,437	122,545

(a)Includes $2 related to commercial leveraged leases at December 31, 2025.

(b)Excludes $106 of residential mortgage loans measured at fair value and includes $243 of commercial leveraged leases, net of unearned income, at December 31, 2025.

CREDIT RISK PROFILE

Commercial Portfolio Segment

For purposes of monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leases.

To facilitate the monitoring of credit quality within the commercial portfolio segment, the Bancorp utilizes the following categories of credit ratings: pass, special mention, substandard, doubtful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter.

The Bancorp defines term loans and leases as those having a fixed duration, repayment schedule and defined interest rate. For purposes of disclosing both originated and acquired term loans by origination year, the Bancorp generally determines the origination date for loans and leases within the commercial portfolio as the date of the most recent credit decision or extension. Revolving and other loans include loans with revolving privileges and certain complex lending arrangements involving commitments made by the Bancorp under predefined terms, including loans with both revolving and non-revolving components, loans with delayed draw features or loans with interchangeable interest rate and repayment options that extend beyond the time of origination.

The following tables present the amortized cost basis of the Bancorp’s commercial portfolio segment, by class and vintage, disaggregated by credit risk rating:


As of March 31, 2026 ($ in millions)	Term Loans and Leases by Origination Year							Revolving and Other Loans
	2026		2025	2024	2023	2022	Prior		Total
Commercial and industrial loans:
Pass	$	2,119	6,563	4,063	1,833	2,679	2,321	59,357		78,935
Special mention	27		95	135	62	58	46	1,354		1,777
Substandard	15		52	243	159	184	158	2,251		3,062
Doubtful	—		—	1	—	—	—	89		90
Total commercial and industrial loans	$	2,161	6,710	4,442	2,054	2,921	2,525	63,051		83,864
Commercial mortgage owner-occupied loans:
Pass	$	583	1,843	1,109	1,060	1,395	2,099	3,228		11,317
Special mention	7		100	10	47	59	113	78		414
Substandard	6		126	55	61	70	75	136		529
Doubtful	—		—	—	—	—	—	—		—
Total commercial mortgage owner-occupied loans	$	596	2,069	1,174	1,168	1,524	2,287	3,442		12,260
Commercial mortgage nonowner-occupied loans:
Pass	$	193	1,478	933	846	1,100	1,381	7,869		13,800
Special mention	5		1	21	5	11	24	373		440
Substandard	23		20	66	19	53	5	457		643
Doubtful	—		—	—	—	—	—	—		—
Total commercial mortgage nonowner-occupied loans	$	221	1,499	1,020	870	1,164	1,410	8,699		14,883
Commercial construction loans:
Pass	$	—	37	—	—	—	27	7,267		7,331
Special mention	—		—	—	60	—	—	538		598
Substandard	—		—	—	—	—	—	400		400
Doubtful	—		—	—	—	—	—	—		—
Total commercial construction loans	$	—	37	—	60	—	27	8,205		8,329
Commercial leases:
Pass	$	451	1,152	814	262	176	594	—		3,449
Special mention	—		5	22	—	—	—	—		27
Substandard	8		3	14	12	3	7	—		47
Doubtful	—		—	—	—	—	—	—		—
Total commercial leases	$	459	1,160	850	274	179	601	—		3,523
Total commercial loans and leases:
Pass	$	3,346	11,073	6,919	4,001	5,350	6,422	77,721		114,832
Special mention	39		201	188	174	128	183	2,343		3,256
Substandard	52		201	378	251	310	245	3,244		4,681
Doubtful	—		—	1	—	—	—	89		90
Total commercial loans and leases	$	3,437	11,475	7,486	4,426	5,788	6,850	83,397		122,859


As of December 31, 2025 ($ in millions)	Term Loans and Leases by Origination Year							Revolving and Other Loans
	2025		2024	2023	2022	2021	Prior		Total
Commercial and industrial loans:
Pass	$	3,359	2,040	861	1,829	832	553	40,015		49,489
Special mention	23		51	10	7	13	10	839		953
Substandard	57		89	92	138	42	28	1,743		2,189
Doubtful	—		1	—	—	6	—	111		118
Total commercial and industrial loans	$	3,439	2,181	963	1,974	893	591	42,708		52,749
Commercial mortgage owner-occupied loans:
Pass	$	1,136	615	572	648	537	406	1,712		5,626
Special mention	24		4	28	16	14	3	72		161
Substandard	69		44	38	33	27	12	132		355
Doubtful	—		—	—	—	—	—	—		—
Total commercial mortgage owner-occupied loans	$	1,229	663	638	697	578	421	1,916		6,142
Commercial mortgage nonowner-occupied loans:
Pass	$	824	542	486	638	109	419	2,628		5,646
Special mention	1		—	—	19	—	—	111		131
Substandard	20		63	16	42	—	24	144		309
Doubtful	—		—	—	—	—	—	—		—
Total commercial mortgage nonowner-occupied loans	$	845	605	502	699	109	443	2,883		6,086
Commercial construction loans:
Pass	$	44	—	—	—	27	—	4,404		4,475
Special mention	—		—	—	—	—	—	548		548
Substandard	—		—	—	—	—	—	293		293
Doubtful	—		—	—	—	—	—	—		—
Total commercial construction loans	$	44	—	—	—	27	—	5,245		5,316
Commercial leases:
Pass	$	1,255	858	266	198	173	472	—		3,222
Special mention	2		6	—	—	1	—	—		9
Substandard	1		15	11	3	5	3	—		38
Doubtful	—		—	—	—	—	—	—		—
Total commercial leases	$	1,258	879	277	201	179	475	—		3,269
Total commercial loans and leases:
Pass	$	6,618	4,055	2,185	3,313	1,678	1,850	48,759		68,458
Special mention	50		61	38	42	28	13	1,570		1,802
Substandard	147		211	157	216	74	67	2,312		3,184
Doubtful	—		1	—	—	6	—	111		118
Total commercial loans and leases	$	6,815	4,328	2,380	3,571	1,786	1,930	52,752		73,562

The following tables summarize the Bancorp’s gross charge-offs within the commercial portfolio segment, by class and vintage:


For the three months ended March 31, 2026 ($ in millions)	Term Loans and Leases by Origination Year							Revolving and Other Loans
	2026		2025	2024	2023	2022	Prior		Total
Commercial loans and leases:
Commercial and industrial loans	$	—	1	—	—	—	6	70	77
Commercial mortgage owner-occupied loans	—		—	—	—	—	—	—	—


Commercial leases	—		—	—	—	—	—	—	—
Total commercial loans and leases	$	—	1	—	—	—	6	70	77


For the three months ended March 31, 2025 ($ in millions)	Term Loans and Leases by Origination Year							Revolving and Other Loans
	2025		2024	2023	2022	2021	Prior		Total
Commercial loans and leases:
Commercial and industrial loans	$	—	6	4	1	—	—	43		54
Commercial mortgage owner-occupied loans	—		—	—	—	—	11	—		11


Commercial leases	—		—	—	—	—	2	—		2
Total commercial loans and leases	$	—	6	4	1	—	13	43		67

Age Analysis of Past Due Commercial Loans and Leases

The following tables summarize the Bancorp’s amortized cost basis in portfolio commercial loans and leases, by age and class:


	Current Loans and Leases(a)		Past Due			Total Loans and Leases	90 Days Past Due and Still Accruing
As of March 31, 2026 ($ in millions)			30-89 Days(a)	90 Days or More(a)	Total Past Due
Commercial loans and leases:
Commercial and industrial loans	$	83,403	322	139	461	83,864	3
Commercial mortgage owner-occupied loans	12,193		58	9	67	12,260	—
Commercial mortgage nonowner-occupied loans	14,788		71	24	95	14,883	19
Commercial construction loans	8,280		47	2	49	8,329	2
Commercial leases	3,516		6	1	7	3,523	1
Total portfolio commercial loans and leases	$	122,180	504	175	679	122,859	25

(a)Includes accrual and nonaccrual loans and leases.


	Current Loans and Leases(a)		Past Due			Total Loans and Leases	90 Days Past Due and Still Accruing
As of December 31, 2025 ($ in millions)			30-89 Days(a)	90 Days or More(a)	Total Past Due
Commercial loans and leases:
Commercial and industrial loans	$	52,481	173	95	268	52,749	2
Commercial mortgage owner-occupied loans	6,127		3	12	15	6,142	—
Commercial mortgage nonowner-occupied loans	6,083		1	2	3	6,086	—
Commercial construction loans	5,315		—	1	1	5,316	1
Commercial leases	3,258		11	—	11	3,269	—
Total portfolio commercial loans and leases	$	73,264	188	110	298	73,562	3

(a)Includes accrual and nonaccrual loans and leases.

Residential Mortgage and Consumer Portfolio Segments

For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, indirect secured consumer loans, credit card, solar energy installation loans and other consumer loans. The Bancorp’s residential mortgage portfolio segment is also a separate class.

The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans, which includes both the delinquency status and performing versus nonperforming status of the loans.

The following tables present the amortized cost basis of the Bancorp’s residential mortgage and consumer portfolio segments, by class and vintage, disaggregated by both delinquency and performing versus nonperforming status:


As of March 31, 2026 ($ in millions)	Term Loans by Origination Year							Revolving Loans	Revolving Loans Converted to Term Loans
	2026		2025	2024	2023	2022	Prior			Total
Residential mortgage loans:
Performing:
Current(a)	$	390	2,205	2,116	1,073	2,841	10,581	—	—	19,206
30-89 days past due	—		1	8	1	2	18	—	—	30
90 days or more past due	—		—	1	—	1	4	—	—	6
Nonperforming	—		—	4	8	15	133	—	—	160
Total residential mortgage loans(b)	$	390	2,206	2,129	1,082	2,859	10,736	—	—	19,402
Home equity:
Performing:
Current	$	38	188	129	46	26	72	5,933	166	6,598
30-89 days past due	—		—	—	—	—	1	30	2	33
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		—	—	1	—	6	90	7	104
Total home equity	$	38	188	129	47	26	79	6,053	175	6,735
Indirect secured consumer loans:
Performing:
Current	$	2,362	7,032	3,915	1,687	1,791	1,340	—	—	18,127
30-89 days past due	1		24	23	20	25	18	—	—	111
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		7	10	12	16	13	—	—	58
Total indirect secured consumer loans	$	2,363	7,063	3,948	1,719	1,832	1,371	—	—	18,296
Credit card:
Performing:
Current	$	—	—	—	—	—	—	1,595	—	1,595
30-89 days past due	—		—	—	—	—	—	16	—	16
90 days or more past due	—		—	—	—	—	—	17	—	17
Nonperforming	—		—	—	—	—	—	30	—	30
Total credit card	$	—	—	—	—	—	—	1,658	—	1,658
Solar energy installation loans:
Performing:
Current	$	57	761	690	1,870	1,007	29	—	—	4,414
30-89 days past due	—		2	4	12	7	—	—	—	25
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	3		5	2	10	6	—	—	—	26
Total solar energy installation loans	$	60	768	696	1,892	1,020	29	—	—	4,465
Other consumer loans:
Performing:
Current	$	97	315	168	270	391	523	923	21	2,708
30-89 days past due	—		3	2	2	7	3	—	—	17
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	1		—	—	1	2	1	—	—	5
Total other consumer loans	$	98	318	170	273	400	527	923	21	2,730
Total residential mortgage and consumer loans:
Performing:
Current	$	2,944	10,501	7,018	4,946	6,056	12,545	8,451	187	52,648
30-89 days past due	1		30	37	35	41	40	46	2	232
90 days or more past due	—		—	1	—	1	4	17	—	23
Nonperforming	4		12	16	32	39	153	120	7	383
Total residential mortgage and consumer loans(b)	$	2,949	10,543	7,072	5,013	6,137	12,742	8,634	196	53,286

(a)Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2026, $63 of these loans were 30-89 days past due and $233 were 90 days or more past due. The Bancorp recognized losses of an immaterial amount during the three months ended March 31, 2026 due to claim denials and curtailments associated with these insured or guaranteed loans.

(b)Excludes $105 of residential mortgage loans measured at fair value at March 31, 2026, including $1 of 30-89 days past due loans, $1 of 90 days or more past due loans and $4 of nonperforming loans.


As of December 31, 2025 ($ in millions)	Term Loans by Origination Year							Revolving Loans	Revolving Loans Converted to Term Loans
	2025		2024	2023	2022	2021	Prior			Total
Residential mortgage loans:
Performing:
Current(a)	$	1,871	2,047	897	2,649	4,095	5,800	—	—	17,359
30-89 days past due	—		4	2	3	8	15	—	—	32
90 days or more past due	—		2	1	—	3	4	—	—	10
Nonperforming	—		3	7	14	17	104	—	—	145
Total residential mortgage loans(b)	$	1,871	2,056	907	2,666	4,123	5,923	—	—	17,546
Home equity:
Performing:
Current	$	194	137	50	27	1	76	4,182	83	4,750
30-89 days past due	—		—	—	—	—	1	23	1	25
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		—	1	—	—	5	61	4	71
Total home equity	$	194	137	51	27	1	82	4,266	88	4,846
Indirect secured consumer loans:
Performing:
Current	$	7,854	4,387	1,881	2,004	1,213	435	—	—	17,774
30-89 days past due	23		26	24	31	17	8	—	—	129
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	4		10	12	19	11	5	—	—	61
Total indirect secured consumer loans	$	7,881	4,423	1,917	2,054	1,241	448	—	—	17,964
Credit card:
Performing:
Current	$	—	—	—	—	—	—	1,683	—	1,683
30-89 days past due	—		—	—	—	—	—	18	—	18
90 days or more past due	—		—	—	—	—	—	17	—	17
Nonperforming	—		—	—	—	—	—	29	—	29
Total credit card	$	—	—	—	—	—	—	1,747	—	1,747
Solar energy installation loans:
Performing:
Current	$	814	724	1,914	1,030	1	29	—	—	4,512
30-89 days past due	1		4	14	7	—	—	—	—	26
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	1		2	11	7	—	1	—	—	22
Total solar energy installation loans	$	816	730	1,939	1,044	1	30	—	—	4,560
Other consumer loans:
Performing:
Current	$	248	104	245	377	139	204	957	22	2,296
30-89 days past due	1		1	3	5	2	2	1	1	16
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		—	2	3	—	—	2	1	8
Total other consumer loans	$	249	105	250	385	141	206	960	24	2,320
Total residential mortgage and consumer loans:
Performing:
Current	$	10,981	7,399	4,987	6,087	5,449	6,544	6,822	105	48,374
30-89 days past due	25		35	43	46	27	26	42	2	246
90 days or more past due	—		2	1	—	3	4	17	—	27
Nonperforming	5		15	33	43	28	115	92	5	336
Total residential mortgage and consumer loans(b)	$	11,011	7,451	5,064	6,176	5,507	6,689	6,973	112	48,983

(a)Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2025, $83 of these loans were 30-89 days past due and $195 were 90 days or more past due. The Bancorp recognized an immaterial amount of losses during the three months ended March 31, 2025 due to claim denials and curtailments associated with these insured or guaranteed loans.

(b)Excludes $106 of residential mortgage loans measured at fair value at December 31, 2025, including $2 of 30-89 days past due loans and $4 of nonperforming loans.

The following tables summarize the Bancorp’s gross charge-offs within the residential mortgage and consumer portfolio segments, by class and vintage:


For the three months ended March 31, 2026 ($ in millions)	Term Loans by Origination Year							Revolving Loans	Revolving Loans Converted to Term Loans
	2026		2025	2024	2023	2022	Prior			Total

Consumer loans:
Home equity	$	—	—	—	—	—	—	2	—	2
Indirect secured consumer loans	—		7	8	8	12	5	—	—	40
Credit card	—		—	—	—	—	—	19	—	19
Solar energy installation loans	—		2	4	13	7	—	—	—	26
Other consumer loans	—		1	1	3	5	4	9	—	23
Total residential mortgage and consumer loans	$	—	10	13	24	24	9	30	—	110


For the three months ended March 31, 2025 ($ in millions)	Term Loans by Origination Year							Revolving Loans	Revolving Loans Converted to Term Loans
	2025		2024	2023	2022	2021	Prior			Total

Consumer loans:
Home equity	$	—	—	—	—	—	—	2	—	2
Indirect secured consumer loans	—		6	11	12	4	3	—	—	36
Credit card	—		—	—	—	—	—	22	—	22
Solar energy installation loans	—		3	11	7	—	—	—	—	21
Other consumer loans	—		1	4	7	2	3	8	—	25
Total residential mortgage and consumer loans	$	—	10	26	26	6	6	32	—	106

Collateral-Dependent Loans and Leases

The Bancorp considers a loan or lease to be collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. When a loan or lease is collateral-dependent, its fair value is generally based on the fair value less cost to sell of the underlying collateral.

The following table presents the amortized cost basis of the Bancorp’s collateral-dependent loans and leases, by portfolio class, as of:


($ in millions)	March 31, 2026		December 31, 2025
Commercial loans and leases:
Commercial and industrial loans	$	350	322
Commercial mortgage owner-occupied loans	68		19
Commercial mortgage nonowner-occupied loans	12		5
Commercial construction loans	62		—

Total commercial loans and leases	$	492	346
Residential mortgage loans	143		143
Consumer loans:
Home equity	70		70
Indirect secured consumer loans	36		35

Total consumer loans	$	106	105
Total portfolio loans and leases	$	741	594

Nonperforming Assets

Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain and certain other assets, including OREO and other repossessed property.

The following table presents the amortized cost basis of the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of:


	March 31, 2026				December 31, 2025
($ in millions)	With an ALLL		No Related ALLL	Total	With an ALLL	No Related ALLL	Total
Commercial loans and leases:
Commercial and industrial loans	$	366	51	417	350	43	393
Commercial mortgage owner-occupied loans	50		30	80	16	13	29
Commercial mortgage nonowner-occupied loans	12		2	14	5	—	5
Commercial construction loans	—		62	62	—	—	—

Total nonaccrual portfolio commercial loans and leases	$	428	145	573	371	56	427
Residential mortgage loans	84		80	164	69	80	149
Consumer loans:
Home equity	53		51	104	23	48	71
Indirect secured consumer loans	49		9	58	52	9	61
Credit card	30		—	30	29	—	29
Solar energy installation loans	26		—	26	22	—	22
Other consumer loans	5		—	5	8	—	8
Total nonaccrual portfolio consumer loans	$	163	60	223	134	57	191
Total nonaccrual portfolio loans and leases(a)(b)	$	675	285	960	574	193	767
OREO and other repossessed property	—		39	39	—	30	30
Total nonperforming portfolio assets(a)(b)	$	675	324	999	574	223	797

(a)Excludes $141 and $70 of nonaccrual loans held for sale as of March 31, 2026 and December 31, 2025, respectively.

(b)Includes $38 and $21 of nonaccrual government-insured commercial loans whose repayments are insured by the SBA as of March 31, 2026 and December 31, 2025, respectively.

The Bancorp recognized an immaterial amount of interest income on nonaccrual loans and leases for both the three months ended March 31, 2026 and 2025.

The Bancorp’s amortized cost basis of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $162 million and $110 million as of March 31, 2026 and December 31, 2025, respectively.

Modifications to Borrowers Experiencing Financial Difficulty

In the course of servicing its loans, the Bancorp works with borrowers who are experiencing financial difficulty to identify solutions that are mutually beneficial to both parties with the objective of mitigating the risk of losses on the loan. These efforts often result in modifications to the payment terms of the loan. The types of modifications offered to borrowers vary by type of loan and may include term extensions, interest rate reductions, payment delays (other than those that are insignificant) or combinations thereof. The Bancorp typically does not provide principal forgiveness except in circumstances where the loan has already been fully or partially charged-off.

The Bancorp applies its expected credit loss models consistently to both modified and non-modified loans when estimating the ALLL. For loans which are modified for borrowers experiencing financial difficulty, there is generally not a significant change to the ALLL upon modification because the Bancorp’s ALLL estimation methodologies already consider those borrowers’ financial difficulties and the resulting effects of potential modifications when estimating expected credit losses.

Portfolio loans with an amortized cost basis of $362 million and $254 million as of March 31, 2026 and 2025, respectively, were modified during the three months ended March 31, 2026 and 2025, respectively, for borrowers experiencing financial difficulty, as further discussed in the following sections. These modifications for the three months ended March 31, 2026 and 2025 represented 0.21% of total portfolio loans and leases as of both March 31, 2026 and 2025. These amounts excluded $22 million and $19 million for the three months ended March 31, 2026 and 2025, respectively, of consumer and residential mortgage loans which have been granted a concession under provisions of the Federal Bankruptcy Act and are monitored separately from loans modified under the Bancorp’s loan modification programs. As of March 31, 2026 and December 31, 2025, the Bancorp had commitments of $160 million and $69 million, respectively, to lend additional funds to

borrowers experiencing financial difficulty whose terms have been modified during the twelve months ended March 31, 2026 and December 31, 2025, respectively.

Commercial portfolio segment

Commercial loan modifications are individually negotiated and may vary depending on the borrower’s financial situation, but the Bancorp most commonly utilizes term extensions for periods of three to twelve months. The Bancorp may also consider offering commercial borrowers interest rate reductions or payment delays, which may be combined with a term extension.

The following tables present the amortized cost basis as of March 31, 2026 and 2025 of the Bancorp’s commercial portfolio loans that were modified for borrowers experiencing financial difficulty, by portfolio class and type of modification:


For the three months ended March 31, 2026 ($ in millions)	Term Extension		Term Extension and Payment Delay	Payment Delay	Other	Total	% of Total Class
Commercial and industrial loans	$	258	12	—	19	289	0.34
Commercial mortgage owner-occupied loans	9		—	—	—	9	0.07
Commercial mortgage nonowner-occupied loans	3		1	—	—	4	0.03
Commercial construction loans	32		—	—	—	32	0.38
Total commercial portfolio loans	$	302	13	—	19	334	0.28


For the three months ended March 31, 2025 ($ in millions)	Term Extension		Term Extension and Payment Delay	Payment Delay	Other	Total	% of Total Class
Commercial and industrial loans	$	50	6	65	—	121	0.23
Commercial mortgage owner-occupied loans	5		24	—	—	29	0.47
Commercial mortgage nonowner-occupied loans	24		—	—	—	24	0.39
Commercial construction loans	8		—	42	—	50	0.84
Total commercial portfolio loans	$	87	30	107	—	224	0.31

Financial effects of loan modifications

The following table presents the financial effects of the Bancorp’s significant types of commercial portfolio loan modifications to borrowers experiencing financial difficulty, by portfolio class:


		For the three months ended March 31,
	Financial Effects	2026	2025
Commercial and industrial loans	Weighted-average length of term extensions	8 months	6 months
	Weighted-average length of payment delay	4 months	4 months
Commercial mortgage owner-occupied loans	Weighted-average length of term extensions	3 months	9 months
	Weighted-average length of payment delay	N/A	10 months
Commercial mortgage nonowner-occupied loans	Weighted-average length of term extensions	11 months	4 months
	Weighted-average length of payment delay	3 months	N/A
Commercial construction loans	Weighted-average length of term extensions	9 months	13 months
	Weighted-average length of payment delay	N/A	7 months

Credit quality of modified loans

The Bancorp closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following tables present the amortized cost basis as of March 31, 2026 and 2025 for the Bancorp’s commercial portfolio loans that were modified during the twelve months ended March 31, 2026 and 2025, respectively, for borrowers experiencing financial difficulty, by age and portfolio class:


March 31, 2026 ($ in millions)			Past Due
	Current		30-89 Days	90 Days or More	Total
Commercial and industrial loans	$	361	11	27	399
Commercial mortgage owner-occupied loans	39		—	—	39
Commercial mortgage nonowner-occupied loans	88		1	—	89
Commercial construction loans	69		31	—	100
Total commercial portfolio loans	$	557	43	27	627


March 31, 2025 ($ in millions)			Past Due
	Current		30-89 Days	90 Days or More	Total
Commercial and industrial loans	$	213	6	33	252
Commercial mortgage owner-occupied loans	66		—	24	90
Commercial mortgage nonowner-occupied loans	72		—	—	72
Commercial construction loans	107		1	—	108
Total commercial portfolio loans	$	458	7	57	522

The Bancorp considers modifications to borrowers experiencing financial difficulty that subsequently become 90 days or more past due under the modified terms as subsequently defaulted. The following tables present the amortized cost basis of commercial portfolio loans as of March 31, 2026 and 2025 of the modifications for borrowers experiencing financial difficulty that subsequently defaulted during the three months ended March 31, 2026 and 2025, respectively, and were within twelve months of the modification date:


March 31, 2026 ($ in millions)	Term Extension		Payment Delay	Term Extension and Payment Delay	Total
Commercial and industrial loans	$	23	—	—	23
Commercial mortgage owner-occupied loans	—		—	—	—


Total commercial portfolio loans	$	23	—	—	23


March 31, 2025 ($ in millions)	Term Extension		Payment Delay	Term Extension and Payment Delay	Total
Commercial and industrial loans	$	—	11	6	17
Commercial mortgage owner-occupied loans	—		—	24	24


Total commercial portfolio loans	$	—	11	30	41

Residential mortgage portfolio segment

The Bancorp has established residential mortgage loan modification programs which define the type of modifications available as well as the eligibility criteria for borrowers. The designs of the Bancorp’s modification programs for residential mortgage loans are similar to those utilized by the various GSEs. Refer to Note 6 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional information on the Bancorp’s residential mortgage loan modification programs.

The following table presents the amortized cost basis as of March 31, 2026 and 2025 of the Bancorp’s residential mortgage portfolio loans that were modified for borrowers experiencing financial difficulty, by type of modification:


	March 31, 2026			March 31, 2025
For the three months ended ($ in millions)	Total		% of Total Class	Total		% of Total Class


Term extension and payment delay	$	10	0.05	$	16	0.09

Term extension, interest rate reduction and payment delay	6		0.03	2		0.01
Total residential mortgage portfolio loans	$	16	0.08	$	18	0.10

The Bancorp had $44 million and $3 million of trial modifications to residential mortgage loans outstanding as of March 31, 2026 and 2025, respectively, which are excluded from the completed modification activity in the table above. These trial modifications will be reported as completed modifications once the borrower satisfies the applicable contingencies in the modification agreement and the loan is contractually modified to make the modified terms permanent.

Consumer portfolio segment

The Bancorp’s modification programs for consumer loans vary based on type of loan. Refer to Note 6 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional information on the Bancorp’s consumer loan modification programs.

The following tables present the amortized cost basis as of March 31, 2026 and 2025 of the Bancorp’s consumer portfolio loans that were modified for borrowers experiencing financial difficulty, by portfolio class and type of modification:


For the three months ended March 31, 2026 ($ in millions)	Interest Rate Reduction		Payment Delay	Other	Total	% of Total Class
Home equity	$	—	—	5	5	0.07
Credit card	6		—	—	6	0.36
Solar energy installation loans	—		—	—	—	—
Other consumer loans	—		1	—	1	0.04
Total consumer portfolio loans	$	6	1	5	12	0.04


For the three months ended March 31, 2025 ($ in millions)	Interest Rate Reduction		Payment Delay	Other	Total	% of Total Class
Home equity	$	1	—	3	4	0.09
Credit card	6		—	—	6	0.36
Solar energy installation loans	—		1	—	1	0.02
Other consumer loans	—		1	—	1	0.04
Total consumer portfolio loans	$	7	2	3	12	0.04